Andrew Harnik / Associated Press File (2022)
Deputy Treasury Secretary Wally Adeyemo is touting the Internal Revenue Service’s new Direct File pilot program for tax filers in Nevada and 11 other states. “As people in Nevada are sitting down, filing their taxes … we hope that they will take advantage of this new product to make it as easy and as cheap as possible for them,” he said in a press call last week. Tax Day is Monday.
Thursday, April 11, 2024 | 2 a.m.
With Tax Day around the corner, some locals are taking advantage of an IRS pilot program that allows earners with “simple tax filing needs” to file their tax return free of charge, according to the agency’s website.
Direct File, the IRS’s free electronic tax return filing system, was launched last month on a limited basis in 12 states, including Nevada.
“What I’ve heard from the IRS commissioner is nearly half of Americans have still not filed their taxes,” Wally Adeyemo, deputy secretary of the U.S. Department of Treasury, said in a press call last week. “So as people in Nevada are sitting down, filing their taxes … we hope that they will take advantage of this new product to make it as easy and as cheap as possible for them to file their taxes.”
Almost half a million Nevadans qualify to use what Adeyemo called the agency’s “innovative application,” which he added was available in both English and Spanish and can cut down both the cost and time of filing a tax return. Direct File also provides users with a calculator to determine their eligibility for available tax credits, he said, to ensure they get their maximum return.
To qualify, you must have a W-2 from an employer and less than $1,500 in interest income from savings bonds, the IRS said. Those who receive income from payment apps, rent or prizes, tips or alimony payments don’t qualify to use Direct File.
The deadline to file federal tax returns or request an extension is Monday.
“Fundamentally, the Direct File program is part of the Inflation Reduction Act, because what it’s done is it’s allowed us to put taxpayers in a position where they can save money and they can save time using this product, and use that money and use that time to invest in their community and invest in their families,” Adeyemo said.
He thanked U.S. Rep. Dina Titus, D-Nev., for her efforts to allocate funds from the Inflation Reduction Act to the Treasury Department to improve IRS customer service. Such efforts led to the creation of Direct File, which also was rolled out in California, Arizona, Florida, Massachusetts, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming.
“I see it as a real investment in my constituents,” Titus said in the press call last week. “Because nobody likes to pay taxes, but it seems like if you can do it quicker, easier and cheaper, that makes it a lot less painful.”
Direct File is ultimately available to people with “simple sources of income,” Adeyemo said, meaning people who don’t receive a slew of tax forms beyond their W-2 or 1099. He encouraged taxpayers to check their eligibility online.
“If you need some help — if you want to be able to file them online — Direct File is an application that you should try,” he said, noting that more than 50,000 Americans had already done so. “We’re hoping that people in Nevada and people in the other 11 states that are also eligible take advantage of this product.”
John Wightman, managing partner of the Rich, Wightman & Company certified public accounting firm in Las Vegas, said even if Direct File has a negative effect on professional tax preparers — it is nonetheless a “great opportunity” for taxpayers.
“If they’re comfortable at working with a computer and have a general understanding of their tax return, I think this program is going to be very helpful and save some money for those folks,” Wightman said.
He cautioned people who may not be so apt at technology or who may have complex tax credits to still visit a tax professional. There is something to be said, he emphasized, about the benefit of meeting with a tax preparer face-to-face so that they can get to know you, your circumstances and your finances and ensure that you get your maximum return.
The “gravy,” he said, is in the advice that an accountant can give you.
“If you’re just relying upon the knowledge of the client, you’re literally asking somebody who’s not familiar with what can and cannot be deductible,” he said. “And without that professional (tax preparer) prodding you and making the in-depth interview — you’re probably leaving money on the table.”
It’s the age-old adage, Wightman said: “You get what you pay for.”
Though the Direct File program is unique as an IRS offering, it’s certainly not the only free-filing option available to Nevadans.
Chicanos Por La Causa Nevada, a local nonprofit, partners annually with the U.S. Filipino Veterans Group to provide free tax preparation through the IRS’ Volunteer Income Tax Assistance program. It offers tax-preparation services for community members who earn under a certain income, seniors, people who speak limited English and others.
“As I do the tax preparation for different folks, we’re able to talk the language in their native tongue,” said Frank Gallardo, director of homeless projects for Chicanos Por La Causa Nevada. “It’s just very, very interesting to hear the challenges that a lot of our general community face when it comes to navigating the tax-preparation services.”
He was happy to hear about Direct File, Gallardo said, because it gives people who may be reluctant to use other online resources a new, trustworthy way to file their taxes for free.
“Folks work very hard,” he said. “And they shouldn’t have to go to a big tax preparer when it’s a relatively simpler tax preparation that needs to be done.”
Free tax preparation like what Chicanos Por La Causa offers is “much needed” in the community, he added. Last year, the program processed more than 500 tax refunds, ultimately saving community members nearly $80,000 in tax-service costs.
Money that doesn’t go to tax services means more money to pay bills or put food on the table, Gallardo said.
“All of us are volunteers,” he said of the Chicanos Por La Causa tax operation. “We are not paid for this. It is just our passion and our love for the community, the work that we do and our ability to lend our expertise as tax preparers.”
